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Friday, November 2, 2007

Verenex Energy Q3 Results- $19 Haywod Securities Target

Verenex Energy (VNX : TSX : $10.65)

Verenex issued their third quarter results. They spudded their seventh well in Libya. However, they don't expect cash flow from their Libyan discoveries until late 2009.

Haywood Securities maintains "sector outperform", 12-month target price is $19.00.

This is one of two "none income" producing holdings at this time. A safer way to play Verenex is by holding Vermillion Energy Trust (VET.UN:TSX) which is Verenex's largest sharholder. Vermillion pays out $0.17 per month and is trading around the $40 mark.

Verenex will be very volatile until they actually start production and can publish accurate reserve calculations. Please conduct your own due dilligence.

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